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After 13 rounds of intensive bidding, the three-winning bidders of the now-defunct Rajesh LifeSpaces hotel property in Mumbai bidders are the hospitality and restaurant conglomerate Sankalp Recreation from Ahmedabad, Shri Ram Multicom from Kolkata and Rare Asset Reconstruction Co. The valuer chosen by the banks will now assess the three bidders' varied strategies. Lenders will put the best plan up for voting based on the net present value in accordance with the valuer's report.
"Lenders are awaiting a report from Resurgent to determine which of the three bids may be named the preferred proposal because each of the three is structured differently. Strong and beyond expectations, the bids are currently far more than the basic price of 305 crore established by creditors "a source who is aware of the process stated. The greatest amount, $533 crore, was provided by Sankalp Recreation, however the majority of the payment is delayed. It has provided 30 crore up front, 20 crore in the next days, and the remainder 483 crore in the following 300 days.
The proposal from Shri Ram Multicom is for 474 crores, payable over 90 days. Rare ARC has proposed 461 crores upfront and an additional 31 crores in firm ownership. The offered stock represents around 5% of the overall debt to lenders of Rs. 621 crores. "In order to make the best choice given the various payment plans put forth by the bidders, banks are awaiting the valuer's report. Yet it is undeniable that the bids are far more than the established base price "explained the individual.
As many bidders expressed interest in the assets this month, lenders requested an online challenger bid auction. A challenger bid is one in which a bidder matches or outbids the highest offer in each round until no one is left to do so. The investment vehicle of DMart promoter Radhakishan Damani, Bright Star Investments was one of the initial six bidders but decided not to proceed after the preliminary rounds.
In order to run a 316-room, five-star hotel at Kanjurmarg, close to Mumbai's Powai neighbourhood, Rajesh Business & Leisure Hotels partnered with Singapore's GHM Hotel. Due to a cash crisis, the company was unable to finish the project. Since 2019, Rajesh Business has been identified on bank records as a non-performing asset. The three banks with the biggest exposure to the company are Union Bank of India ($128 crore), Bank of Baroda ($162 crore), and ICICI Bank ($331 crore). Their exposure comes in the form of bank guarantees and outside commercial borrowings.
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